As 2024 comes to a draw, the Indian legal landscape can expect a major transformation – in fact, an overhaul of sorts. 2024 was characterized by new reforms in areas such as digital protection, competition law reforms, and increasing compliance in the areas of ESG and supply chain. 2025 could be more interesting with the spotlight on a confluence of technological advancements, evolving regulatory frameworks, and increasing global integration.
ARBITRATION & LITIGATION WILL GET MORE TECH-DRIVEN
According to an industry report, the Indian legal services market is estimated to grow by a CAGR of 6.28% to $3.18 billion by 2029. 2024 has observed a significant shift towards Alternative Dispute Resolution (ADR) mechanisms, with an emphasis on speedier settlements outside conventional courts. Although a sample of 25 respondents is a smaller data- set, this study by the Federation of Indian Corporate Lawyers is interesting. 61% opined arbitration was a preferred form of dispute resolution.
The Indian economy has grown alongside an uptick in pre-litigation cases which may be driven by rising commercial disputes and enhanced awareness of legal rights. More reliance on AI tools by enterprises and business expansion has resulted in the need for specialized legal services. While arbitrators provide value, the legal practice may witness more advanced AI deployments. That to a flurry of expected legislative reforms, especially in areas such as labor and the digital realm which have observed disruptive practices. AI deployment is believed to be causing job-losses and many believe that the practice could be as harsh as outsourcing the entire “thinking job” to an LLM.Rather, the corporate-legal arena could approach litigation management in a subtle manner. Things such as predictive analysis, case management, and e-discovery have already been explored by leading corporate houses; additionally online dispute resolution (ODR) could be a norm for smaller claims, reducing court backlogs and providing a more efficient and accessible justice system.
THOUGHT PROVOCATIONS
Although legal frameworks around Environmental, Social, and Governance (ESG) compliance gained prominence after the BRSR (Business Responsibility and Sustainability Reporting) guidelines were announced in 2023, one may witness newer narratives. Climate change may fuel a rise in climate-related litigation. There is a likelihood that businesses and industries will face increased scrutiny regarding their environmental impact, and legal professionals specializing in environmental law will have to play a crucial role in navigating these complex issues. There is no doubt that climate change is a man-made disaster, but how much is an entity or corporate responsible and what could be the extent of liabilities can be a vexatious concept.
More thought provocations are likely to be encountered in the digital arena. Enforcement of data privacy laws may have resulted in an assurance of safety from a data-breach which augurs well to shape a more accountable digital ecosystem. 2024 has also been characterized by usage of simple AI tools which could be used in generating content, images, and even ideas. But who owns these ideas? Is it the person who generated a prompt? Is it the interface that processed the request? Or is the archive data on which the AI was trained? The intersection of technology and law gives rise to novel legal questions, such as the ownership of AI-generated content and the liability of such tools.
If 2024 saw Landmark judgments and reforms under the Insolvency and Bankruptcy Code (IBC) which bolstered creditor confidence and provided clarity on resolution timelines; 202 could witness some challenges too. Addressing judicial vacancies remains a critical issue to reduce pendency and ensure timely justice delivery. The evolving cyber threat landscape necessitates robust cyber-security frameworks to safeguard digital assets. Additionally, ensuring equitable access to legal services for all citizens remains a priority. Moreover, the increasing complexity of legal issues and the rising costs of legal services can hinder access to justice, particularly for businesses on an edge.
2024 laid a strong foundation for innovation, technology adoption, and legislative progress. 2025 is poised to build on these gains. The corporate legal landscape in India will be characterized by a blend of increased regulatory demands, technological advancements, and a shift towards greater transparency and accountability. Corporate lawyers will need to adapt to these changes by enhancing their expertise in governance practices, ESG compliance, and technological integration to effectively support their clients in navigating this evolving environment.
Akshat Khetan is a distinguished corporate and legal advisor. He is an expert in M&A, corporate restructuring, and turnaround specialist. He brings to the table a unique fusion of experience-driven business acumen and an unconventional approach to empower clients to conclusively address their problems. You can follow him on Twitter @akshat_khetan
